Natural disasters will drive up insurance premiums

Insurance policyholders may soon feel the effects of the high number of natural disasters that have occurred over the past 12 months.

About $200 million in claims has been recorded over the past year including the recent bushfires in NSW as well as storms and floods in QLD and NSW. Chris Henri of the Insurance Disaster Response Organisation said it is this kind of run of events that puts pressure on insurance premiums. And putting further pressure on personal insurance premiums is the recent increase in the cost of reinsurance.

The Chief Financial Officer of QBE Insurance expects home and contents and car insurance premiums to rise while a spokesperson from CGU said home insurance premiums had recently risen by about 5 per cent.

The Sydney Morning Herald, p7, 19/1/02